Are These The Best Tech Stocks To Buy Right Now For Your Long-Term Portfolio?
The stock market may be volatile at times, but it’s safe to say it has been a good year thus far for investors. Sure, tech stocks have experienced some pullbacks over the past few months. But it is also for this reason that the sector appears to be presenting buying opportunities. After all, most of the top growth stocks are stemming from the tech industry and tech companies continue to make huge strides this year.
Investors continue to understand that innovation will always be a key factor in promoting growth. This has resulted in the industry being considered one of the driving forces behind the bullish stock market we have witnessed in the past decade. If you’re looking for the top tech stocks to buy and hold for the long run, some may prefer those that can survive periods of soft demand and high unemployment.
As the economy reopens, investors may find themselves in a position where they have to choose between cyclical stocks and tech stocks. Of course, it is possible that some tech stocks will also benefit from the reopening of the economy. With that in mind, could these five tech stocks fit the criteria in the stock market right now?
Best Tech Stocks To Buy Watch Right Now
- CrowdStrike Holdings Inc. (NASDAQ: CRWD)
- Alibaba Group Holding Ltd. (NYSE: BABA)
- Cisco Systems Inc (NASDAQ: CSCO)
- Verizon Communications Inc. (NYSE: VZ)
- Intel Corporation (NASDAQ: INTC)
CrowdStrike Holdings Inc.
First up, CrowdStrike finds itself at the center of a rapidly growing and transformative industry. In essence, the company provides cloud workload and endpoint security along with threat intelligence, and cyber-attack response services. Specifically, its Falcon platform protects customers against cyberattacks on endpoints on or off the network by offering protection and visibility across the enterprise. And the best part is, it has already achieved great success. The Falcon platform is retaining 98% of its clients and had 64% of its customers purchase at least four cloud module subscriptions in the fiscal first quarter.
The cybersecurity company also received an upgrade from Stifel recently. The analyst gave a “Buy” rating and a new price target that implies a potential 25% increase. Stifel analyst Brad Reback says that the company’s rapid growth is not showing signs of slowing down anytime soon and could lead to a significant upside for its stock. With the current robust demand driven by rising needs for cybersecurity solutions, I won’t be surprised if CRWD stock continues to climb in the long run.
Alibaba Group Holding Ltd.
Chinese e-commerce giant Alibaba needs little introduction. It owns some of the most popular e-commerce sites in China which include Tmall and Taobao. Alibaba also has other divisions, the most notable of which is its cloud computing segment. Besides, it also has a sizable stake in fintech company Ant Group, which operates the digital payment solution Alipay.
In the last quarterly result, Alibaba grew an incredible 41% in revenues to 717 billion yuan ($111 billion) year-over-year. Impressively, all its divisions grew in revenues with its China commerce retail business as the main driver. The company continues to strengthen its e-commerce services with plans to develop self-driving delivery trucks. Furthermore, Alibaba recently updated its existing partnership with global container liner shipping company ZIM Integrated Shipping Services (NYSE: ZIM) for two more years. Considering all these, would you consider BABA stock a buy?
Cisco Systems Inc.
Cisco is a multinational tech company that engages in designing and selling a range of technologies across networking, security, collaboration, applications, and the cloud. The company seems primed to grow as it develops technologies such as 5G, Wi-Fi 6, and the 400 gigabit Ethernet. The adoption of said technologies with an improving IT environment could accelerate spending on networks. We could see an increase in revenue driven by a return to offices, increased adoption of hybrid cloud networks, and the company’s increasing participation in public cloud infrastructure. In a post-Covid era, Cisco could still be an attractive asset.
The company’s high-margin software division is rapidly expanding. In the most recent quarter, Cisco generated almost $4 billion in software revenue, growing 13% year-over-year which is close to 30% of total revenue. Subscriptions accounted for more than 80% of Cisco’s software sales, providing a steady flow of cash. Cisco’s move to software may enable it to increase profitability at a faster rate than revenue. Given all that, would you consider buying CSCO stock?
Verizon Communications Inc.
Next up we have telecommunications giant, Verizon. Like its rivals, Verizon has been hard at work adopting 5G technology. It is well-positioned to meet rising customer demand for improved networks and services. Despite that, VZ stock has been trading sideways for the past few months. Could these be a chance for investors to buy on dips?
The company reported steady first-quarter revenue with 4% year-over-year growth to $32.9 billion. This would mark its second consecutive quarter where the company grew its revenue on both its wireless equipment and other services segments. Verizon had a strong cash flow performance in the first quarter, with $5.2 billion in free cash flow. Investors receive $2.51 per share in dividends each year as a result of these cash flows, an almost 4.5% yield. Investors who prefer consistent growth and rising dividends might want to consider VZ stock.
Intel is a company that engages in designing and manufacturing products and technologies for cloud, smart, and connected devices. The company is set to begin production of its new version of Xeon server chip line in the first quarter of 2022 with a ramp-up by the second quarter. The chip code-named “Sapphire Rapids” could substantially widen Intel’s already vast lead in AI performance. The company expects the chip to improve AI performance by four to eight folds which could provide Intel with a more competitive advantage over rivals.
On another note, Intel has agreed to use SiFive’s RISC-V IP in Intel’s new foundries under a new licensing agreement. Without going into details of the technical jargon, the move by Intel could be an important first step to address consumers’ demand to produce chips with the same performance but lower power consumption. With the developments surrounding Intel, would you put INTC stock on your watchlist?